{"id":13329,"date":"2024-08-14T11:49:07","date_gmt":"2024-08-14T11:49:07","guid":{"rendered":"https:\/\/zacksim.com\/blog\/?p=13329"},"modified":"2024-08-14T11:49:08","modified_gmt":"2024-08-14T11:49:08","slug":"recent-volatility-has-investors-feeling-nervous-about-the-market","status":"publish","type":"post","link":"https:\/\/zacksim.com\/blog\/recent-volatility-has-investors-feeling-nervous-about-the-market\/","title":{"rendered":"Recent Volatility Has Investors Feeling Nervous About The Market"},"content":{"rendered":"\n<p><em>Tammy C. from Kalamazoo, MI asks: <\/em>Hi Mitch, it is nice to see that the stock market recovered last week, but I\u2019ll admit I\u2019m still on edge. The market does not feel super stable and with the election nearing it seems like more volatility is coming. Do you have any thoughts or advice to navigate through this period? Thank you!<\/p>\n\n\n\n<p><strong>Mitch\u2019s Response:<\/strong><\/p>\n\n\n\n<p>Market volatility can be unsettling, especially when it is downside volatility accompanied by worrisome news, like a weaker-than-expected jobs report and technical factors many investors find confusing, like the unwinding of the carry trade based on rising interest rates in Japan.<\/p>\n\n\n\n<p>To put it differently, I understand that many people share your concerns. &nbsp;<\/p>\n\n\n\n<p>As I\u2019ve written recently, I see the current market volatility as a byproduct of a quick shift in sentiment and technical factors\u2014not fundamental drivers tied to the U.S. or global economy. Real wages have been rising, inflation has been trending lower, the U.S. consumer continues to spend at a better-than-expected rate, and the services sector remains in expansion mode. I\u2019m not seeing signs of a recession in the second half of the year.<sup>1<\/sup><\/p>\n\n\n\n<p>This assessment gives me confidence that the selling pressure is more corrective than part of a longer-term trend, which I think means it is best to remain patient and avoid knee-jerk changes to investment portfolios.<\/p>\n\n\n\n<p><strong><u><a href=\"https:\/\/go.steadyinvestor.com\/arrow-use-volatility-to-your-advantage?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_08_15&amp;content=volatility_can_be_good_guide\" data-type=\"link\" data-id=\"https:\/\/go.steadyinvestor.com\/arrow-use-volatility-to-your-advantage?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_08_15&amp;content=volatility_can_be_good_guide\">How Market Volatility Can Benefit Your Portfolio<\/a><\/u><\/strong><\/p>\n\n\n\n<p>Although volatility can be unsettling, it is important for investors to notice its potential benefits.<\/p>\n\n\n\n<p>Market fluctuations can be challenging, but with decades of experience, I\u2019m offering our insights on how to use volatility to your advantage in our free guide, <strong><em><u><a href=\"https:\/\/go.steadyinvestor.com\/arrow-use-volatility-to-your-advantage?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_08_15&amp;content=volatility_can_be_good_guide\" data-type=\"link\" data-id=\"https:\/\/go.steadyinvestor.com\/arrow-use-volatility-to-your-advantage?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_08_15&amp;content=volatility_can_be_good_guide\">Using Market Volatility to Your Advantage<sup>2<\/sup><\/a><\/u><\/em><\/strong>.<\/p>\n\n\n\n<p>Our expert analysis will cover:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>How market volatility can \u201cshake up\u201d complacent investors<\/li>\n\n\n\n<li>Potential bargains that may be uncovered through turbulence<\/li>\n\n\n\n<li>Why volatility may help prevent overheating and market \u201cbubbles\u201d<\/li>\n\n\n\n<li>What history shows us about opportunities for steady investors in turbulent markets<\/li>\n\n\n\n<li>Plus, more ways you may be able to benefit from a volatile market<\/li>\n<\/ul>\n\n\n\n<p>If you have $500,000 or more to invest, download our free guide today!<\/p>\n\n\n\n<p><strong><u><a href=\"https:\/\/go.steadyinvestor.com\/arrow-use-volatility-to-your-advantage?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_08_15&amp;content=volatility_can_be_good_guide\" data-type=\"link\" data-id=\"https:\/\/go.steadyinvestor.com\/arrow-use-volatility-to-your-advantage?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_08_15&amp;content=volatility_can_be_good_guide\">Download Our Guide, \u201cUsing Market Volatility to Your Advantage\u201d<sup>2<\/sup><\/a><\/u><\/strong><\/p>\n\n\n\n<p>Now, I realize that the answer to \u201cdo nothing\u201d is probably not very satisfying, so I want to give you some advice on what I think you should do now to address your feeling of being \u201con edge.\u201d<\/p>\n\n\n\n<p>The first thing I recommend is to revisit your entire financial situation, long-term goals, cash flow needs, etc. This exercise may seem daunting and time-consuming, but the goal is to give you confidence that your investment portfolio and overall asset allocation are aligned with your long-term goals and needs. In other words, are you still on track to reach your objectives?<\/p>\n\n\n\n<p>If the answer is yes, then hopefully you can feel better about how you\u2019re positioned in the current markets. Volatility is a normal, natural feature of equity investing, and I often say it is the price investors pay for attractive long-term returns. If you\u2019ve reviewed your financial situation, goals, and investment portfolio\u2014and everything is aligned\u2014then it is important to remember that your portfolio is set up to weather ups and downs over time. Corrections and even bear markets are simply part of the process. Since 1980, the average intra-year decline for the S&amp;P 500 is -14.3%, which reminds us that downside volatility is not an anomaly of equity investing\u2014it is a feature of it.<\/p>\n\n\n\n<p>The issue that often troubles many investors \u2013 and ultimately hurts them \u2013 is that they let volatilityincrease their temptation to \u201ctime the market,\u201d allowing short-term uncertainties to drive their decision-making. But if your long-term goals and financial situation have not significantly changed in the last few weeks, then it is very likely your investment portfolio should not change, either.<\/p>\n\n\n\n<p>To make the most out of these turbulent times, I am offering all readers our guide, <strong><a href=\"https:\/\/go.steadyinvestor.com\/arrow-use-volatility-to-your-advantage?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_08_15&amp;content=volatility_can_be_good_guide\" data-type=\"link\" data-id=\"https:\/\/go.steadyinvestor.com\/arrow-use-volatility-to-your-advantage?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_08_15&amp;content=volatility_can_be_good_guide\"><em><u>Using Market Volatility to Your Advantage<\/u><\/em><\/a><\/strong><sup><a href=\"https:\/\/go.steadyinvestor.com\/arrow-use-volatility-to-your-advantage?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_08_15&amp;content=volatility_can_be_good_guide\" data-type=\"link\" data-id=\"https:\/\/go.steadyinvestor.com\/arrow-use-volatility-to-your-advantage?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_08_15&amp;content=volatility_can_be_good_guide\">3<\/a><\/sup>. This guide provides expert insights into how a volatile market can help investors refine their strategies and potentially achieve strong returns over time.<br>\u00a0<br>It also covers:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>How market volatility can \u201cshake up\u201d complacent investors<\/li>\n\n\n\n<li>Potential bargains that may be uncovered through turbulence<\/li>\n\n\n\n<li>Why volatility may help prevent overheating and market \u201cbubbles\u201d<\/li>\n\n\n\n<li>What history shows us about opportunities for steady investors in turbulent markets<\/li>\n\n\n\n<li>Plus, more ways you may be able to benefit from a volatile market<\/li>\n<\/ul>\n\n\n\n<p>If you have $500,000 or more to invest, download this free guide today by clicking on the link below.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mitch talks about market volatility, economic fundamentals, and how investors should position themselves for the second half of 2024.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[66,71],"tags":[],"class_list":["post-13329","post","type-post","status-publish","format-standard","hentry","category-mitchs-mailbox","category-private-client-group"],"acf":[],"_links":{"self":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/13329","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/comments?post=13329"}],"version-history":[{"count":2,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/13329\/revisions"}],"predecessor-version":[{"id":13331,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/13329\/revisions\/13331"}],"wp:attachment":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media?parent=13329"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/categories?post=13329"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/tags?post=13329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}